GBP – The British pound dropped across the board and fell to an all-time low against the dollar on Monday as investors worried Britain’s new economic plan would hurt the country’s finances.
Furthermore, the Bank of England fell short of speculation for an emergency rate hike, instead simply stating it was watching financial markets “very closely”.
City Index notes: “The market’s reactions show that investors have lost confidence in the government approach, creating a level of volatility that outs the pound on par with some emerging market peers. There is a good chance that the BoE will now be forced to hike rates aggressively in the coming November meeting if an emergency intervention isn’t made before.”
Furthermore, the Bank of England fell short of speculation for an emergency rate hike, instead simply stating it was watching financial markets “very closely”.
City Index notes: “The market’s reactions show that investors have lost confidence in the government approach, creating a level of volatility that outs the pound on par with some emerging market peers. There is a good chance that the BoE will now be forced to hike rates aggressively in the coming November meeting if an emergency intervention isn’t made before.”